This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Disruptive Innovation Primer PPT: Learn Clayton Christensen’s model, market disruption examples, and innovation management strategies. Download this expert presentation now. Disruptive Innovation Primer is a 16-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
Disruptive Innovation, a concept pioneered by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
In his book, "The Innovator's Dilemma," Christensen showed that time and again almost all the organizations that have "died" or been displaced from their industries could see the disruption coming, but did nothing until it was too late.
Most good companies are on a path of sustaining innovations by catering to their most profitable customers. This leaves them open for disruptive technologies. This is because the established companies are designed to maximize profits through sustaining innovations.
When Disruptive Innovations emerge, established companies are unable to react quickly enough. They almost always go up-market rather than to defend these new or low-end markets, and ultimately the disruptive innovation improves, steals more market share, and replaces them.
Companies tend to innovate faster than their customers' needs evolve. Thus, they produce offerings too sophisticated, too expensive, and too complicated for many customers.
This presentation delves into the core elements of Disruptive Innovation, breaking down the model into digestible components. It highlights how incumbents often fail to respond effectively to disruptive threats, despite having the necessary capabilities. The PPT provides a nuanced understanding of why established companies are unable to defend against low-end market entrants, ultimately leading to their displacement.
The primer also outlines the limitations of the Disruptive Innovation model, emphasizing the need for a separate strategy process and a deep understanding of customer needs. It includes real-world examples of disrupted markets, offering valuable insights for executives aiming to navigate and leverage disruptive forces in their industries.
This PPT slide outlines 4 critical elements of the Disruptive Innovation theory by Clayton Christensen. Incumbents often focus on continuous innovation, which can lead to complacency. The pace of sustaining innovation may exceed customer needs, creating a disconnect between innovation and actual demand. While incumbents have the resources to respond to disruptive changes, they frequently struggle with execution. As a result, they may flounder, risking loss of market share and relevance. Additionally, external factors such as market dynamics and consumer behavior shifts can influence disruptive innovation, indicating that the model is not exhaustive. Understanding these elements is essential for organizations navigating market disruption.
This PPT slide compares disruptors and disruptees across industries. Disruptors include personal computers, mini mills, cellular phones, community colleges, discount retailers, and retail medical clinics, which have altered market dynamics. Personal computers have replaced mainframe and mini computers, while cellular phones have made fixed line telephony obsolete. Disruptees, such as integrated steel mills, four-year colleges, full-service department stores, and traditional doctor’s offices, represent older business models struggling against agile disruptors. Common characteristics of disruptive businesses include lower gross margins and smaller target markets, which attract underserved segments and enable them to challenge established competitors. Recognizing these trends is essential for strategic planning and investment decisions in a rapidly evolving market.
This PPT slide outlines 3 limitations of the Disruptive Innovation model. First, it requires a distinct strategic process that is emergent, focusing on unanticipated opportunities rather than strict planning. Second, innovators must understand the underlying aims of potential customers, moving beyond surface-level preferences to identify genuine needs, which can be challenging. Third, disruptive ventures typically struggle to generate significant profits quickly due to their focus on new or lower-end markets, limiting immediate profitability. Additionally, venture capitalists' impatience for quick returns may affect funding decisions and the viability of disruptive innovation efforts.
This PPT slide outlines 2 critical elements of disruptive innovation: the trajectory of improvement by incumbents and the pace of sustaining innovation. Established companies typically follow a trajectory of incremental innovation, enhancing products like engine horsepower in the automotive industry to target higher profit margins. Conversely, the speed of sustaining innovation often exceeds customer needs, leading to products that surpass what mainstream customers can utilize effectively. For example, early personal computer users struggled to keep up with advancements like the Intel 286 chip. Companies must align innovations with realistic customer adoption to avoid overshooting expectations and ensure market relevance.
Source: Best Practices in Innovation, Disruptive Innovation, Clayton Christensen PowerPoint Slides: Disruptive Innovation Primer PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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